Nasdaq Correction Signals Potential Upside for Amazon and Zscaler Stocks

US Stock Market Showing Positive Movement with S&P 500 and Nasdaq 100 Surge

Key Points

  • The Nasdaq Composite entered correction territory, down over 10% from its recent high. It has gained 21.9% in the 12 months following a correction close.
  • Amazon’s projected earnings growth is 23% annually, and its price target implies a 26% upside.
  • Zscaler’s robust SSE platform and projected 21% annual revenue growth position it for a 38% upside.
  • While short-term challenges persist, Amazon and Zscaler present potential long-term investment opportunities.

According to The Motley Fool, the Nasdaq Composite entered correction territory on August 2 after dropping over 10% from its recent high. This decline contributed to disappointing U.S. labor market data, which showed fewer job additions in July than expected and a rise in unemployment to its highest level since 2021.

Despite these challenges, historical data suggests a positive outlook. Over the past 15 years, the Nasdaq has averaged a 21.9% gain in the 12 months following its first correction close, implying a potential 22% upside by August 2025. Wall Street analysts also anticipate strong Amazon (AMZN) and Zscaler (ZS) performance.

Amazon is poised for growth across its core markets: e-commerce, digital advertising, and cloud computing. According to various industry reports, the company is projected to capture 40.4% of U.S. online retail sales this year, increase its share of digital ad spending to 13.9%, and hold 32% of the cloud infrastructure market.

Despite narrowly missing Q2 revenue estimates with a 10% increase to $148 billion, Amazon’s GAAP earnings surged 94% to $1.26 per diluted share. However, slower growth forecasts for Q3 have weighed on the stock. Nevertheless, Wall Street expects Amazon to grow earnings at an annual rate of 23% over the next three years, suggesting its current valuation remains attractive.

Zscaler specializes in zero-trust network access and has seen growth driven by its SSE platform. It offers improved user experience, cost savings on security appliances, and enhanced threat detection through AI-driven insights. In Q4 of fiscal 2024, Zscaler’s revenue rose 30% to $593 million, while non-GAAP net income grew 38% to $0.88 per share.

Despite these strong results, Zscaler’s stock dropped 17% due to slower growth projections for fiscal 2025, attributed to sales team turnover. However, Wall Street remains optimistic, with expected annual revenue growth of 21% over the next three years.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

Read More

We are highly passionate and dedicated to delivering our readers the latest information and insights into technology innovation and trends. Our mission is to help understand industry professionals and enthusiasts about the complexities of technology and the latest advancements.

Visits Count

Last month: 44950
This month: 20327🟢Running

Company

Contact Us

Follow Us

TECHNOLOGY ARTICLES

SERVICES

COMPANY

CONTACT US

FOLLOW US